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California 20252026

AB 2724

Insurance: distressed areas.

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Source: Open States / PluralUpdated 2026-09-12 13:12:55 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Insurance, distressedareas
Introduced / first action
2026-02-20 00:00:00

Alternate titles

  • Catastrophe modeling: distressed areas.

Source-supplied abstracts

Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and generally regulates the business of insurance in the state. Existing law establishes the California FAIR Plan Association, a joint reinsurance association in which all insurers licensed to write basic property insurance participate to administer a program for the equitable apportionment of basic property insurance for persons who are unable to obtain that coverage through normal channels. Existing regulations authorize insurers, in distressed areas and for properties insured by the FAIR Plan that are exposed to wildfire risk, to use catastrophe modeling, as specified. Under existing regulations, a distressed area includes undermarketed ZIP Codes and distressed counties. Existing law requires the State Fire Marshal to classify lands into fire hazard severity zones in accordance with state responsibility areas and local responsibility areas, as specified. Existing regulations establish and record wildland-urban interface (WUI) areas in accordance with these classifications. This bill would require the department, on or before July 1, 2027, and yearly thereafter, to conduct a review and update distressed areas based on updates to the WUI designated areas. As part of the review, the bill would require the department, among other things, to hold at least one public meeting to allow interested persons to submit suggestions for additional factors to consider when evaluating FAIR Plan percentages in WUI areas. The bill would require the department, on or before January 1, 2028, to publish a list of ZIP Codes in WUI areas on its internet website and to provide this information to certain committees in the Legislature. Existing law requires an admitted insurer with written California premiums totaling $10,000,000 or more to submit a report with specified fire risk information on its residential property policies to the commissioner on or before April 1, 2020, and every 2 years thereafter. Existing law subjects an admitted insurer that fails to submit a report to a civil penalty to be fixed by the commissioner, not to exceed $5,000, or $10,000 if the act was willful. This bill would instead subject an admitted insurer that fails to submit a report to a civil penalty to be fixed by the commissioner, not to exceed $5,000 for each 30-day period that the insurer is not in compliance, or $10,000 for each 30-day period that the insurer is not in compliance, but not to exceed an aggregate amount of $100,000 if the act was willful. The bill would authorize the commissioner to consider an insurer's violation of these provisions as the basis for other enforcement action against an insurer.

Sponsors

Source-supplied history

Actions

  1. Enrolled and presented to the Governor at 3 p.m.

    executive-receipt

  2. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 2.).

    amendment-passage, committee-passage, committee-passage-favorable

  3. In Assembly. Concurrence in Senate amendments pending.

  4. Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0.).

    passage, reading-1, reading-3

  5. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  6. Read third time and amended. Ordered to second reading.

    amendment-passage, reading-1, reading-2, reading-3

  7. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  8. From committee: Do pass. (Ayes 7. Noes 0.) (August 13).

    committee-passage, committee-passage-favorable

  9. In committee: Referred to APPR. suspense file.

    referral-committee

  10. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 24). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  11. Referred to Com. on INS.

    referral-committee

  12. In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1, referral-committee

  13. Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 5057.)

    passage, reading-1, reading-3

  14. Read second time. Ordered to Consent Calendar.

    reading-1, reading-2

  15. From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 6).

    committee-passage, committee-passage-favorable

  16. From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (April 22). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  17. Re-referred to Com. on INS.

    referral-committee

  18. From committee chair, with author's amendments: Amend, and re-refer to Com. on INS. Read second time and amended.

    amendment-introduction, amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  19. Referred to Com. on INS.

    referral-committee

  20. From printer. May be heard in committee March 23.

  21. Read first time. To print.

    reading-1

When supplied by the API

Related measures

No resolvable related measure is supplied.